Luanda - Angola's Investment in hydrocarbons could reach 580 billion US dollars in 2024 representing an increase of 11 percent compared to 2023, a Deloitte study has shown.
The data is part of Deloitte's Oil & Gas Industry Outlook for 2024 to which ANGOP had access on Tuesday, projecting that over 800 billion dollars are expected to be generated this year.
The global oil and gas industry had a solid start in 2024, driven by financial strength and high oil prices, the study has shown.
In economic terms, any fluctuation in the US dollar against other currencies combined with the trajectory of industrial activity and civil society consumption could have an impact on inflation, thus also influencing energy prices in 2024.
However, the study continues, the financial strength of the industry implies high expectations surrounding investors, regulators and other stakeholders, who expect progress in emissions reduction, reinforced investment in low-carbon energies and higher gains for shareholders.
It emphasizes that this scenario promises to be a catalyst for the industry to focus even more on reducing emissions and economic performance.
Frederico Martins Correia, Deloitte's Partner for the Energy, Resources and Industry Sector, quoted by Deloitte, said that "2024 should be a year of consolidation. The exit from the Organization of Petroleum Exporting Countries will allow us to maintain the goal of increasing production and surpass the average value of 1.2 million barrels/day".
Although investments in the sector are being heavily scrutinized, the National Petroleum and Gas Agency (ANPG) has secured key contracts for the sector in new offshore, onshore and marginal fields.
Angola’s State Budget was based on crude oil benchmark estimated at 70 US dollar, which could provide a possible cushion in case of any fluctuations.
According to Deloitte, 2024 could be a very dynamic year from the point of view of mergers and acquisitions in the oil and gas industry.
It emphasized that the proposed acquisitions of Pioneer Natural Resources by ExxonMobil and Hess Corp by Chevron Corporation, for 64.5 billion dollars and 60 billion dollars respectively, could boost a new era of mega-businesses and consolidation in the industry, particularly in the oil sector.
"The current price of oil and gas and the limited number of drilling projects globally may also lead some large buyers to acquire new areas and seek to improve operational efficiency through mergers and acquisitions," the study said.
It adds that regulatory and geopolitical uncertainties, combined with high capital costs, may delay some investment decisions globally. HM/AC/AMP
